The UK used car market is now stronger than most markets in mainland Europe.
According to Indicata, used vehicle values in the UK remain “broadly stable” while several key European markets are experiencing more significant price declines.
Across Europe, the average used car retail price index has fallen by 1.1 percentage points compared with January 2020, with countries including Finland (-13.9pp), Switzerland (-13.7pp), Denmark (-7.4pp), Norway (-6.6pp) and Sweden (-3.9pp) experiencing much steeper declines.
Indicata said only Spain (+9.5pp), Italy (+7.9pp), Poland (+7.8pp), Germany (+4.3pp), the Netherlands (+2.0pp) and Portugal (+1.7pp) are currently outperforming the UK.
The UK’s most popular used vehicles aged up to four years include the Nissan Qashqai, Ford Puma and Kia Sportage, while the Honda e:Ny1, Mercedes-Benz EQC and Renault Symbioz are among the fastest-selling nearly new models.
Dean Merritt, Indicata UK national retail strategy manager said: “The UK market remains in a comparatively strong position against much of Europe supported by strong underlying consumer demand.
“Although we’re seeing the same trend of rising stock levels and slower vehicle rotation from the continent, used vehicle values in the UK have held up exceptionally well.
“What dealers, leasing companies and fleet operators should be watching closely is the growing volume of nearly new vehicles entering the market.
“If supply continues to outpace retail demand, particularly in the youngest age bands, pricing pressure is likely to emerge in that segment first before potentially widening across the broader market.”
